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Everyone who’s a tad bit familiar with the world of finance knows how a credit card works and how it affects their credit history. One thing that’s important to getting a credit card in the UAE is your credit score. This is an important financial number to get any kind of credit, be it loans or credit cards. This article is dedicated to uncovering credit scores you would need to get a credit card of your liking. We have compiled all important things related to credit cards based on credit scores, check credit score for credit card in UAE.
Credit score in UAE is a number allotted to everyone who participates in financial transactions. This number is to determine the creditworthiness of a borrower and it ranges between 300 and 900. The credit score of an individual is a reflection of their creditworthiness and repayment capacity when it comes to borrowing. A good credit score means you are a financially responsible person and take repayments very seriously. A poor credit score for credit card shows that you are not only careless with borrowed money but may have missed out on paying your monthly bills as well. Credit score UAE also takes on normal obligations like paying utility bills. Skipping or missing out on any kinds of payments can also affect your credit score negatively.
Determining credit score of an individual is based on an algorithmic calculation of their income, expenditure, lending and repayment history. Bill payments, credit history and several other lesser-known factors go into finalising this three-digit number. AECB, the organisation responsible to calculate credit scores in UAE may consider a combination of 4-5 different factors when deciding the credit score of a person. Given below is a brief description of the same:
Checking credit scores in the UAE is pretty simple. You can either check it on the official website and offline platforms provided by AECB, Al Etihad Credit Bureau, the institution responsible to calculate the credit scores in the UAE. Following are all the ways you can run a credit score check in the UAE:
Credit scores are divided into five different ranges or categories in the UAE – very low, low, medium, high and very high range. Each range is given stars starting from 1 to 5. Given below is the list of ranges for each of these categories:
Getting a credit card based on your credit is all about determining which range your credit score belongs to and then getting a list of the credit cards that can be arranged with your credit score. Now, a credit score is not the only eligibility criteria you will have to clear. Minimum income and age are also applicable to most credit cards based on credit scores available in the UAE. Note that credit cards in the UAE are not pre-divided into different categories based on credit score. However, we have attempted to explain the credit cards for each of the categories:
With credit scores this high, you can basically get any credit card you want in the UAE, as long as you satisfy the minimum income requirements. Some credit cards may be available only on a preferential basis. For example, cards that come with opening premium bank accounts or wealth management accounts. These credit cards may still be out of reach for most people unless they are eligible for them. However, apart from that, you can any other credit card based on the credit score you have.
Most special benefit credit cards can be taken by people with medium to high credit scores. Getting any basic or special benefit on credit score for credit card is easy when you have at least a medium credit score UAE. Now, just because you can get most credit cards you qualify for, doesn’t mean you should start blindly applying for them all. Every time a credit score check is run by banks to verify details on your credit card application, it drops further down. So, make sure that you only send in applications only for one or two top credit cards of your choice. Run a thorough check, compare benefits and see which one fits your needs the best.
Getting a credit card based on your credit score UAE is quite difficult when your credit score falls into the low or very low category. Most banks offer secured credit cards to people with a low and very low credit scores. Taking out a secure credit card can be a pretty good thing for your low credit score. A secured card can be used to bump up your credit score to the medium category at the least. Once your credit score is medium aka a 3-star category credit score, you can close your secured credit card and move to a more flexible, unsecured option. Some banks may also offer unsecured credit cards for people with low credit scores UAE. However, you may have to check the availability of such cards with your bank.
There will be a time in everyone’s life when they did not have a credit card. However, this does not mean that you cannot get a credit card at all. If you are starting early consider getting a beginner credit card with useful value-added benefits like cashback offers. Cashback offers credit cards are available to almost everyone, irrespective of their credit scores. If you have been regular with your payments and you haven’t defaulted on anyone of them then your credit score should be somewhere in the medium, 3-star range. Individuals in this range can easily get cashback or a rewards credit card. If your credit score is in the low or very low range, you may face some trouble getting a generic credit card. In this case, you can go for secured credit cards and invest in some time to build your credit score UAE. In short, you can easily get a credit card even if you have no credit history with credit tools.
Apart from your credit score for credit card in UAE, few other factors can influence your credit card application. Even if the credit score UAE influences almost all credit tools, several other factors may lead to a rejected credit card application. If one or more of these factors come into play, your application may get denied even if you have a good credit score. Given below are the top factors that will prove influential when you apply for a credit card in the UAE:
If you have a low range credit score, getting credit cards based on credit score becomes rather hard. However, you can easily improve your credit score by taking care of a few simple steps. Given below are some of the things you can do to make sure that your credit score rises to a moderate or yet better, high or very high range:
With the availability of online platforms, getting a credit card is a matter of a few clicks. But having a good credit score for credit card in UAE is still extremely important. The safest way to make sure that you can always get credit cards based on credit scores is to maintain at least a medium level credit score in the UAE. Pay your bills on time, keep up with your credit repayments and take all your financial responsibilities, no matter how big or small they are. You can also get in touch with our financial experts and get any kind of assistance you need in getting a new credit card. Policybazaar.ae is just a few taps away.
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